AMD accuses Intel

AMD has launched an aggressive antitrust suit against chip giant Intel in the US, accusing its fierce rival of worldwide coercion of A-brand vendors, local assemblers, distributors and retailers to maintain its position in the market and restrict AMD’s business opportunities.

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By  Stuart Wilson Published  June 28, 2005

AMD has launched an aggressive antitrust suit against chip giant Intel in the US, accusing its fierce rival of worldwide coercion of A-brand vendors, local assemblers, distributors and retailers to maintain its position in the market and restrict AMD’s business opportunities. The 48-page antitrust complaint against Intel claims that Intel unlawfully maintained its monopoly position in the x86 microprocessor market by engaging in worldwide coercion of customers from dealing with AMD. It identifies 38 companies that it claims have been victims of coercion by Intel and outlines seven alleged types of illegal activity across three continents. “Everywhere in the world, customers deserve freedom of choice and the benefits of innovation – and these are being stolen away in the microprocessor market,” said Hector Ruiz, AMD chairman of the board, president and chief executive officer. “Whether through higher prices from monopoly profits, fewer choices in the marketplace or barriers to innovation – people from Osaka to Frankfurt to Chicago pay the price in cash every day for Intel’s monopoly abuses.” The move by AMD comes on the back of a recent ruling from the Fair Trade Commission of Japan (JTFC), which concluded that Intel abused its monopoly power to exclude fair and open competition. The European Commission is also pursuing an investigation against Intel for similar possible antitrust violations. “You don’t have to take our word for it when it comes to Intel’s abuses; the Japanese government condemned Intel for its exclusionary and illegal misconduct,” said Thomas M. McCoy, AMD executive VP, legal affairs and chief administrative officer. “We encourage regulators around the world to take a close look at the market failure and consumer harm Intel’s business practices are causing in their nations. Intel maintains illegal monopoly profits at the expense of consumers and computer manufacturers, whose margins are razor thin. Now is the time for consumers and the industry worldwide to break free from the abusive Intel monopoly.” The detailed complaint, filed yesterday in the US, claims that Intel forced major vendors such as Dell, Sony, Toshiba and Gateway into Intel-exclusive deals; used rebates, allowances and MDF to force other major vendors such as Acer, NEC and Fujitsu into partial exclusivity agreements; established a system of discriminatory and retroactive incentives that effectively denied customers the freedom of purchasing AMD processors in significant volumes, and threatened retaliation against customers introducing AMD platforms. The report also accuses Intel of establishing and enforcing quotas among key retailers around the world and forcing PC vendors to boycott AMD product launches and promotions

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